The aerospace and aviation industries are lifting off across Alabama, but Birmingham's presence in what is considered one of the state's key industries appears to be in a holding pattern.

The Birmingham Business Alliance says there are plenty of other industries to target for the area's economic development efforts. But officials in Alabama's largest metro area also say they are willing to reach for the stars when an opportunity makes sense.

"We have to be smart about where we focus our economic development and marketing efforts," Brian Hilson, the BBA's chief executive, said in an interview. "That being said, you have to always be open-minded about any industry where you have an opportunity to grow."

Birmingham's biggest player in the industry dates back 60 years through a company that operates one of the largest hangar facilities at the Birmingham-Shuttlesworth International Airport. But that company -- most recently known as Alabama Aircraft Industries Inc. -- has experienced recent turbulence.

Last month, a division of Kaiser Group Holdings purchased Alabama Aircraft in a U.S. Bankruptcy Court transaction, saving 118 of the company's 325 jobs. In its heyday, the firm employed more than 1,000.

Alabama Aircraft, previously known as Pemco Aeroplex and Hayes Aircraft, primarily refurbished military aircraft, but Kaiser has said the company's Birmingham operations needs to pursue commercial work.

Helping Kaiser

Hilson met with Kaiser officials on Thursday and outlined a plan for the BBA to help the company bring more business to its new Birmingham facility.

"They have tremendous capacity for aircraft refurbishment," Hilson said. "They are currently operating at about 5 percent capacity. That kind of under-utilized capacity creates tremendous opportunity."

Hilson, who joined the BBA from Huntsville last spring, said he and others at BBA plan to use their contacts in the aviation industry to kelp promote Kaiser in Birmingham and land more aircraft work.

Alabama Aircraft hit hard times after losing a $1.1 billion U.S. Air Force contract to Boeing Co., and it filed for Chapter 11 bankruptcy protection from creditors in February, citing about $70 million in unpaid pension benefits.

The bankruptcy sale was opposed by Boeing and the Birmingham Airport Authority in court -- Boeing citing rights as a joint venture partner and the authority citing concerns that leases on hangars and offices would not be honored.

Now that the Kaiser deal is complete, Hilson said the BBA needs to do all it can to help the existing industry grow here.

"I see the BBA and our economic development marketing efforts working to boost business and jobs there," he said. "There are potentially hundreds if not thousands of good-paying jobs that could be created just by using the capacity that exists there."

Doing so doesn't require Birmingham to invest hundreds of millions in new infrastructure, just helping an existing industry promote what it already has, Hilson said.

"This thing is really teed up for us," he said.

Realistic ambitions

Aerospace and aviation projects, however, are rarely teed up in Birmingham.

That is despite rapid growth for the aerospace and aviation cluster in the state.

In 2008, there were 280 companies in those sectors in Alabama, with a combined payroll of $8 billion, according to a study prepared last year by researchers at the University of Alabama in Huntsville. That year, there were 158,000 jobs tied to the aerospace sector, the study said. The number of Alabama aerospace jobs expanded by 13.1 percent between 2002 and 2008, twice the figure for the overall work force in the state, the study said.

The BBA's five-year strategic plan, Blueprint Birmingham, does not list aerospace or aviation as a targeted industry cluster. Blueprint Birmingham does list core industries of metal and steel manufacturing, finance and insurance, health care services, and trade and distribution along with emerging opportunities such as biological and medical technology, diverse manufacturing, and arts, entertainment and tourism.

Patrick Murphy, head of economic development for the BBA, said specialized components of the aerospace and aviation industries fit into the Blueprint picture. But, he added, the growth potential for the industry in Birmingham does not warrant making it a targeted industry in the plan.

"Our proximity to Huntsville, Montgomery and Mobile might put us in the position to pursue some of those projects from time to time, but there are other industries that we know we will have greater success with on a more consistent basis," he said.

There is no question that Redstone Arsenal and the ties to NASA give Huntsville the launch pad to be the hub of the aviation and aerospace industry in Alabama. The history and the infrastructure in facilities, scientists and work force guarantee the Rocket City will propel aerospace and aviation industries in everything from defense to commercial applications.

Montgomery is home to Maxwell Air Force Base and its own branch of the aviation industry, while Fort Rucker gives the Wiregrass a hold on helicopter-related activities.

Mobile has maximized the use of the once vacant Brookley Field to win its share of smaller aviation projects and put itself in the running for mega projects such as Boeing's Dreamliner and the EADS refueling tanker aircraft. Though it lost out on the Air Force tanker project, EADS has not ruled out producing commercial aircraft in Mobile.

Small cities such as Troy, Tallassee and Andalusia also have earned a place on the state's aviation map.

The latest big winner in the aviation lottery is Auburn, which will be home to GE Aviation's new engine coatings plant when it opens next year. That plant will bring millions of dollars in investment in the facility and equipment and, over time, will create around 400 high-paying jobs.

Apart from the occasional component manufacturer or supplier, Birmingham's greatest opportunities with ties to aviation may be in distribution and logistics. A $201 million improvement project at the Birmingham airport paves the way for greater cargo capacity, enhancing the area's growing presence in logistics.

Talk of a major project on the former Stockham Valves & Fittings property near the airport could also boost the region's standing in that growing logistics industry -- one that is part of BBA's Blueprint Birmingham.

Hilson said the Birmingham-Shuttlesworth International Airport's greatest contribution to economic development, however, will be providing a much-improved first impression for travelers to the city and creating the opportunity for direct international flights.

So while it may not be an area of emphasis, Birmingham would never shoot down an opportunity in the industry, he said.

"We certainly are not opposed to adding more of that industry here," Murphy said. "As long as that is a key industry for the state, you're going to see it continue to be on our radar in some respects."